Analysts have been eager to weigh in on the Healthcare sector with new ratings on Translate Bio Inc (TBIO) and Sesen Bio Inc (SESN).
Translate Bio Inc (TBIO)
In a report released today, Andrew Fein from H.C. Wainwright reiterated a Buy rating on Translate Bio Inc, with a price target of $21. The company’s shares closed yesterday at $6.78, close to its 52-week low of $5.
Fein commented:
“Valuation and risks to achievement of target price. Our price target of $21/share is based on an equally-weighted composite of: (a) $12.6/share, as a 35x multiple of taxed and diluted $3.85 discounted back to FY19 at 20% (in line with the expected PE multiple and discount rate of an early development-stage biotechnology company); and (b) an NPV of $29.3/ share (discounted cash flow analysis using a 12% discount rate and 3.5% growth rate, in line with the expected discount and growth parameters of an early development-stage biotechnology company).”
According to TipRanks.com, Fein is a 4-star analyst with an average return of 3.2% and a 40.2% success rate. Fein covers the Healthcare sector, focusing on stocks such as Constellation Pharmaceuticals Inc, DBV Technologies SA – American, and Proteostasis Therapeutics Inc.
Currently, the analyst consensus on Translate Bio Inc is a Moderate Buy with an average price target of $21.
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Sesen Bio Inc (SESN)
Sesen Bio Inc received a Hold rating and a $1 price target from H.C. Wainwright analyst Swayampakula Ramakanth today. The company’s shares closed yesterday at $0.93, close to its 52-week low of $0.76.
Ramakanth observed:
“We are lowering our rating of SESN to and reducing our 12-month price target to $1.00 per share, from $3.00. We derive our price target based on a risk-adjusted NPV analysis of projected Vicinium and Proxinium revenues through 2030 assuming a 12% discount rate and 3% terminal growth rate. We derive an rNPV of $16M for the products and add in cash and cash equivalents of $58M to arrive at a 12-month price target of $0.76 per diluted share, which we round to $1.00. (1) clinical; (2) regulatory; (3) commercial; (4) financial; and (5) intellectual property.”
According to TipRanks.com, Ramakanth has 0 stars on 0-5 star ranking scale with an average return of -6.1% and a 30.7% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Diffusion Pharmaceuticals Inc, IntelGenx Technologies, and Collplant Holdings Ltd.
Sesen Bio Inc has an analyst consensus of Hold, with a price target consensus of $1.
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